Concession to design, construct and operate 5 police stations and 4 court houses across 6 locations in regional South Australia
Constructed by Hansen Yunken
Internalised facility management function, subcontracted major services
49.9% equity interest with board representation
INVESTMENT FUNDAMENTALS
25 year concession with SA State Government, expiring 2030
Sites operational since 2006, operating abatement free since commencement of services
Availability-based payment indexed to CPI, with schedules capital replacement profile
Freehold title to land and facilities
Full-term debt (rated A3 by Moodys)
KEY RISKS AND MITIGATION
Operating cost – simple FM and service obligations subcontracted to various providers
Lifecycle capital – detailed lifecycle management plan updated annually
Abatement – Cure period provides buffer against abatement
Refinancing – no refinancing required
Residual value – option to re-lapse by SAPOL subject to negotiation on expiry of concession term, ability to conform to non-SAPOL uses in major regional centres
